P4-6A Sara Yu, CPA, was retained by Info Cable to prepare financial statements for April 2014.Yu accumulated all the ledger balances per Infos records and found the following.
	1. Cash received from a customer on account was recorded as $950 instead of $590. 2. A payment of $75 for advertising expense was entered as a debit to Miscellaneous Expense $75 and a credit to Cash $75. 3. The first salary payment this month was for $1,850, which included $700 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,850 and a credit to Cash $1,850. (No reversing entries were made on April 1.) 4. The purchase on account of a printer costing $310 was recorded as a debit to Supplies and a credit to Accounts Payable for $310. 5. A cash payment of repair expense on equipment for $125 was recorded as a debit to Equipment $152 and a credit to Cash $152.
	Instructions
	(a) Prepare an analysis of each error showing (1) the incorrect entry (2) the correct entry, and (3) the correcting entry.
	(b) Prepare a correct trial balance.
					Dr	Cr
			Debit Credit
			Cash		4100
			Accounts Receivable		3200
			Supplies		800
			Equipment		10600
			Accumulated Depreciation			1250
			Accounts Payable			2100
			Salaries Payable			700
			Unearned Revenue			890
			Common Stock			10000
			Retained Earnings			2880
			Service Revenue			5450
			Salaries Expense		3300
			Advertising Expense		480
			Miscellaneous Expense		290
			Depreciation Expense		500
					23270	23270
	Please note
	There is a difference of 100 in the trial balance Dr and Cr
	(There is some mistake in the wording of the problem)
	Hence in the correct trial balance prepared at the end Dr and Cr also differ by 100
	If the mistake in the problem is rectified then the solution will turn out right
	(a) Prepare an analysis of each error showing (1) the incorrect entry (2) the correct entry, and (3) the correcting entry.
	Incorrect entry is shown in red
	correct entry is shown in green
	Correcting entry is shown in blue
	1. Cash received from a customer on account was recorded as $950 instead of $590.
			Dr	Cr
	Accounts receivable			950
	Cash		950
	cash		590
	Accounts receivable			590
	Accounts receivable		360
	Cash			360
	2. A payment of $75 for advertising expense was entered as a debit to Miscellaneous Expense $75 and a credit to Cash $75.
			Dr	Cr
	Miscellaneous expense		75
	cash			75
	Advertising expense		75
	cash			75
	Advertising expense		75
	Miscellaneous expense			75
	3. The first salary payment this month was for $1850, which included $700 of salaries payable on March 31. The payment was recorded as a debit to Salaries Expense $1850 and a credit to Cash $1850. (No reversing entries were made on April 1)
			Dr	Cr
	Salaries expense		1850
	cash			1850
	Salaries expense		1150
	Salaries payable		700
	cash			1850
	Salaries payable		700
	Salaries expense			700
	4. The purchase on account of a printer costing $310 was recorded as a debit to Supplies and a credit to Accounts Payable for $310.
			Dr	Cr
	Supplies		310
	account payable			310
	Equipment		310
	account payable			310
	Equipment		310
	Supplies			310
	5. A cash payment of repair expense on equipment for $125 was recorded as a debit to Equipment $152 and a credit to Cash $152.
			Dr	Cr
	Equipment		152
	Cash			152
	maintenance repair expense		125
	Cash			125
	Miantenance repair expense		125
	Cash		27
	Equipment			152
	Summary of correcting entries
			Dr	Cr
1)	Cash			360	From 1
			27		From 5
				387
2)	Accounts receivable		360		From 1
			360
3)	Miscellaneous expense			75	From 2
					From 5
				75
4)	Advertising expense		75		From 2
			75
5)	Salaries expense			700	From 3
				700
6)	Salaries payable		700		From 3
			700
7)	Supplies			310	From 4
				310
8)	Equipment		310		From 4
				152	From 5
			158
	(b) Prepare a correct trial balance.
				Original trial balance			Corrected trial balance
					Dr	Cr		Dr	Cr
		Cash			4100			3767		=4100-387
		Accounts Receivable			3200			3560		=3200+360
		Supplies			800			490		=800-310
		Equipment			10600			10758		=10600+158
		Accumulated Depreciation				1250			1250
		Accounts Payable				2100			2100
		Maintenance repair expense						125		=125
		Unearned Revenue				890			890
		Common Stock				10000			10000
		Retained Earnings				2880			2880
		Service Revenue				5450			5450
		Salaries Expense			3300			2600		=3300-700
		Advertising Expense			480			555		=480+75
		Miscellaneous Expense			290			215		=290-75
		Depreciation Expense			500			500
					23270	22570		22570	22570